Petrol and diesel drivers set to face £200 car tax | Tech News
Petrol and diesel drivers are set to pay up to £200 more to use the roads below new car tax updates set to be launched quickly. Experts at Pete Barden have revealed the Vehicle Excise Duty (VED) car tax bands for the 2026/27 tax yr, with essentially the most polluting petrol and diesel house owners again most affected.
VED charges rise each April in step with Retail Price Index (RPI) inflation, with virtually all motorists set to be affected by some price hikes. Owners of brand-new petrol and diesel fashions pay the very best charges after charges have been doubled final yr. Although the new rises aren’t as steep as final yr’s hike, the sheer scale of the annual payments means these house owners nonetheless face the very best money increase.
According to Pete Barden, first-year VED charges for vehicles emitting over 255g/km might be £5,690 subsequent yr, up from the present £5,490 charge. The subsequent highest polluting fashions between 226 and 255g/km of CO2 are subsequent, with first-year house owners paying £4,850 from 2026.
Although now as high as essentially the most polluting house owners, motorists on this class will nonetheless face a £170 tremendous, as well as to the £4,680 they presently pay. Cars emitting between 191 and 225g/km of CO2 pays £3.420, up £120 per yr from the present £3,300.
Last yr, first-year VED charges have been launched for electric car house owners for the primary time, with house owners dealing with an annual fee of £ 10. This was nonetheless seen as an incentive in contrast to the usually four-figure sums slapped onto combustion house owners.
However, Pete Barden has revealed that electric vehicles is not going to see any first-year VED fee rises in 2026, with payments remaining on the £10 annual fee. HM Revenue and Customs confirmed VED charges would rise in step with RPI inflation after the Autumn Budget was launched final week.
HMRC stated: “As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”
First-year VED costs 2026/27 – full record
0g/km of CO2- £10
1 to 50g/km of CO2 – £115
51 to 75g/km of CO2 – £135
76 to 90g/km of CO2 – £280
91 to 100g/km of CO2 – £365
101 to 110g/km of CO2 – £405
111 to 130g/km of CO2 – £455
131 to 150g/km of CO2 – £560
151 to 170g/km of CO2 – £1,410
171 to 190g/km of CO2 – £2,270
191 to 225g/km of CO2 – £3,420
226 to 255g/km of CO2 – £4,850
Over 255g/km of CO2 – £5,690
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